Corporations: It’s the IT, Stupid

Corporations: It’s the IT, Stupid
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An interesting piece published by the Harvard Business Review, addresses the wide concern of still having a large number of corporations, viewing IT as a cost center. Their old school style management still views information technology not as an enabler but as a set of tools required in the present times because other corporations are also using them. While IT needs definitely to sustain corporation strategies, it must also be viewed as a central piece participating to the corporation strategy rather than following it. In this knowledge and information era, many corporation still perform as if they were in the sixteens, requiring from IT the automation of information processes.

Many articles here and there talk about innovation but miss to address the point that IT is today’s major innovation enabler. From R&D, Marketing to Production Lines, all processes are IT driven. For corporations, failing to understand that today’s IT is about mobility, eMarketing, Market and competitors watch and Open innovation is preparing to be tomorrows followers rather than leaders.

Things will certainly start changing when Business Schools will start addressing the IT role in their curriculum, which is unfortunately today far from being the case.

I discussed some these topics in my article:

The Next Information Technology: A Preview of Tomorrow’s Innovations and Challenges
http://www.capfalcon.net/wpr/?page_id=301

An excerpt underneath from the HBR article:

“In last year’s “How IT-Smart Is Your Organization?” survey (..), 75% of business leaders said they view IT as critical to competitiveness or essential to managing business risks and costs. And yet:

  • Only 30% identify IT needs when developing business strategy and take the lead on justifying and gaining approval for IT-related investments
  • Only 26% manage IT-enabled initiatives and drive IT-enabled business change
  • Only 8% are held accountable for delivering IT-enabled business value “

http://blogs.hbr.org/hbr/cramm/2010/02/how-itsmart-is-your-organizati.html